You’ve probably shipped packages through FedEx, but here’s what might surprise you: that same company could be managing your entire supply chain.
Most businesses think of FedEx as just another shipping carrier. Drop off a box, pay for delivery, done. But while you’re focused on their familiar delivery trucks, FedEx operates a massive 3PL operation that most people never hear about.
Through FedEx Supply Chain, they’re quietly running warehouses for major retailers, processing returns, and handling complete order fulfillment for brands you buy from every day.
The question isn’t whether FedEx offers 3PL services—they absolutely do. The real question is whether their approach makes sense for your business.
This breakdown will show you exactly what FedEx offers beyond shipping, how their 3PL services actually work, and whether partnering with them could solve your logistics headaches or create new ones.
What you’ll learn
The exact definition of a logistics provider and how the company fits
Which division provides comprehensive logistics services
The full scope of warehousing and fulfillment capabilities
How the service compares to other major logistics providers
Whether Supply Chain is right for your business needs
TL;DR:
Key takeaways
The company is a logistics provider through its Supply Chain division, not its delivery services
They offer comprehensive logistics beyond shipping, including warehousing and returns management
Supply Chain operates 130+ distribution centers across North America
Their services are primarily designed for mid-to-enterprise level businesses
The 2015 GENCO acquisition transformed the company into a major supply chain player
What exactly is a logistics provider?
To understand the company’s role in third-party logistics, we first need a clear definition of what a logistics provider actually does.
A third-party logistics provider is a company that manages outsourced logistics and supply chain operations for other businesses. Instead of handling these complex functions internally, companies partner with logistics providers to store inventory, fulfill orders, manage transportation, and handle returns.
NOTE: The term stands for “third-party logistics” – the “third party” being the logistics company that’s separate from both the manufacturer (first party) and customer (second party).
The main services offered by logistics providers include:
Warehouse operations and inventory management
Order fulfillment and packaging
Transportation management and freight coordination
Returns processing and reverse logistics
Here’s a simple comparison to clarify the differences:
| Service Type | Primary Function | Example |
|---|---|---|
| Carrier | Transportation only | Express services |
| Logistics provider | Full logistics management | Supply Chain services |
| 4PL | Manages other providers | Supply chain consultants |
For businesses looking to outsource their logistics operations, understanding these distinctions helps identify the right type of service provider. A complete 3PL definition provides more depth on how these partnerships work in practice.
Where the company fits into the logistics world
The company is a third-party logistics provider through its Supply Chain division. Beyond its well-known parcel shipping, the organization offers comprehensive warehousing, order fulfillment, transportation management, and reverse-logistics services, meeting the full definition of a logistics provider.
Most people associate the brand with its delivery services – Express handles overnight packages, Ground manages standard deliveries, and Freight moves large shipments. These divisions primarily function as carriers, moving packages from point A to point B.
PRO TIP: When evaluating the company as a logistics partner, focus on Supply Chain rather than their shipping divisions. Only Supply Chain offers the comprehensive warehousing and fulfillment services that define a true logistics relationship.
The game-changer came in 2015 when the corporation acquired GENCO, a 117-year-old logistics company with $1.6 billion in annual revenue¹. This acquisition instantly transformed the organization from primarily a transportation company into a major player in the supply chain space². GENCO brought extensive warehousing operations, reverse logistics expertise, and established client relationships that formed the foundation of today’s Supply Chain division³. The acquisition doubled their warehouse footprint overnight and added critical capabilities in retail logistics and reverse logistics operations.
This strategic move allowed the company to offer integrated solutions where the same organization handling your warehousing and fulfillment also manages the final delivery to customers – a significant competitive advantage in the logistics industry.
Services & capabilities
Supply Chain offers a comprehensive suite of 3PL services that go far beyond shipping boxes. Here’s what businesses can access through their logistics division:
Warehousing & distribution
The company operates an impressive network of 130+ warehouse and distribution centers⁴ across North America, managing over 40 million square feet of space⁵. This massive infrastructure allows them to store inventory close to major population centers, reducing shipping times and costs for their clients.
Their warehousing operations include inventory receiving, storage management, cycle counting, and distribution services. The scale of their operation means they can handle both small businesses and Fortune 500 companies with complex distribution requirements. Advanced warehouse management systems provide real-time inventory tracking and automated reorder points to prevent stockouts.
Ecommerce & omnichannel fulfillment
Modern retail requires seamless integration across online and offline channels. Supply Chain operates 30+ dedicated omnichannel fulfillment centers⁶ designed specifically for this complexity. These facilities process nearly 150 million direct-to-consumer shipments annually⁷, handling everything from individual ecommerce orders to bulk shipments to retail stores.
The fulfillment centers feature automated sorting systems, pick-and-pack operations, and specialized packaging capabilities for different product types. They can handle peak season volumes, promotional campaigns, and sudden demand spikes that would overwhelm smaller logistics providers.
ALERT: Omnichannel fulfillment is more complex than simple direct-to-consumer shipping. Make sure any logistics provider you consider has proven experience managing inventory across multiple sales channels without creating conflicts or delays.
Transportation management & freight
Beyond parcel delivery, the organization manages comprehensive transportation solutions including less-than-truckload freight, freight forwarding, and multimodal transportation. They coordinate shipments across their entire network, optimizing routes and consolidating loads to reduce costs.
Their transportation management extends to international shipping, customs clearance, and cross-border logistics – capabilities that many regional providers cannot match. Advanced routing algorithms and load optimization software help minimize transportation costs while maintaining delivery schedules.
Reverse logistics & returns processing
Returns management is often overlooked but critical for customer satisfaction. Supply Chain handles approximately 360 million returns annually⁷, processing everything from simple exchanges to complex warranty repairs and refurbishments.
Their reverse logistics capabilities include inspection, testing, refurbishment, remarketing, and responsible disposal of products that cannot be resold. Specialized facilities handle electronics recycling, textile processing, and hazardous material disposal according to environmental regulations.
Value-added services
Beyond basic storage and shipping, the division offers value-added services like kitting and assembly, product customization, compliance management, and specialized handling for industries like healthcare and automotive.
These services allow businesses to outsource complex operations that would otherwise require significant internal resources and expertise. Custom packaging, promotional insertions, and product bundling can all be handled within the fulfillment process.
Technology stack
The company provides clients with visibility dashboards, API integrations, and analytics tools that offer real-time insight into inventory levels, order status, and performance metrics. Their technology infrastructure connects seamlessly with major ecommerce platforms and enterprise resource planning systems.
Benefits of using the company as your logistics provider
Partnering with Supply Chain offers several distinct advantages, particularly for businesses requiring significant scale and integration:
- Unmatched scalability: The global network allows businesses to expand without worrying about logistics capacity. Whether you’re growing from regional to national distribution or expanding internationally, their infrastructure can support that growth.
- Single-source synergy: Having the same company manage your warehouse operations, fulfillment, and final delivery creates seamless coordination. Issues get resolved faster, and you have one point of contact for your entire logistics operation.
- Deep industry expertise: Supply Chain has specialized solutions for healthcare, electronics, automotive, and consumer goods. Their industry-specific knowledge helps navigate complex regulations and requirements.
- Global reach & visibility: Their vast transportation network and advanced technology infrastructure provide unprecedented visibility into your operations, from inventory levels to delivery confirmation.
QUICK TIP: The integration between Supply Chain and the delivery network can significantly reduce the complexity of managing multiple logistics vendors.
Potential drawbacks & considerations
While Supply Chain offers impressive capabilities, several factors may make them less suitable for certain businesses:
The solutions are typically designed for larger operations with significant volume requirements. Smaller businesses may find minimum volume commitments challenging to meet, and the complexity of their systems might exceed simpler needs.
Pricing can be less transparent than with smaller logistics providers. The integrated nature of their services makes it difficult to compare individual components, and custom pricing means costs aren’t always predictable.
ALERT: Integration with enterprise-scale systems takes time and resources. Be prepared for a potentially lengthy implementation process if you’re transitioning from a simpler logistics setup.
The scale that makes the company powerful can also make them less flexible for unique requirements. Smaller providers often provide more personalized service and can adapt more quickly to specific business needs.
For businesses considering alternatives, understanding 3PL pricing models helps evaluate whether their integrated approach provides better value than specialized providers.
Who is Supply Chain best suited for?
Supply Chain typically serves as a strong fit for established businesses with significant scale and specific logistics challenges that benefit from their integrated approach.
- Mid-to-enterprise retailers: Companies that have outgrown regional distribution and need a robust, national warehouse and fulfillment network. Their infrastructure can support rapid geographic expansion and seasonal demand fluctuations.
- Companies needing specialized handling: Industries like healthcare, technology, and automotive require compliance expertise and specialized handling procedures. Supply Chain’s industry-specific solutions address these complex requirements.
- High-growth ecommerce brands: Businesses that have exceeded the capacity of smaller partners and need global scalability. Their omnichannel capabilities support selling across multiple platforms and channels simultaneously.
- Brands with complex operations: Companies managing both direct-to-consumer and business-to-business distribution benefit from the ability to handle diverse fulfillment requirements through a single provider.
For businesses evaluating whether Supply Chain matches their needs, our guide on how to choose a 3PL provides a framework for making this important decision.
Step-by-step: How to engage Supply Chain
Getting started with Supply Chain follows a structured process designed to ensure their services align with your business requirements:
01
Initial inquiry & needs assessment: Contact Supply Chain through their business development team to discuss your current logistics challenges, volume requirements, and growth projections. They’ll evaluate whether your business fits their service model.
02
Collaborative solution design: Engineers work with your team to design a custom solution. This includes warehouse location selection, technology integration planning, and service level agreements.
03
Proposal & agreement: You’ll receive a detailed proposal outlining services, performance metrics, pricing structure, and implementation timeline. Contract negotiations typically address service level guarantees and performance penalties.
04
Onboarding & integration: Once agreements are signed, the technical and operational integration begins. This includes system connections, staff training, inventory transfer, and testing procedures.
NOTE: The onboarding process for enterprise-level partnerships typically takes 60-90 days. Plan accordingly to avoid disruptions to your current operations.
Comparing logistics options
The best logistics partner depends on your specific business requirements, and Supply Chain represents just one approach to outsourced logistics.
| Provider | Best For | Key Strength | Primary Model |
|---|---|---|---|
| Supply Chain | Enterprise scale | Integrated carrier network | Full-service provider |
| UPS Solutions | Global operations | International expertise | Integrated logistics |
| ShipBob | ecommerce brands | Technology platform | Tech-enabled provider |
| Red Stag Fulfillment | Heavy/bulky products | Accuracy guarantees | Specialized provider |
Each provider offers different advantages depending on your business model, product types, and growth stage. For a comprehensive comparison, review our analysis of comparing the best 3PL companies to understand which approach best matches your requirements.
FAQs about logistics providers
What type of logistics provider is the company?
The organization operates as both a carrier (through Express, Ground, and Freight divisions) and a full-service provider (through Supply Chain). The distinction matters because their logistics services include warehousing and fulfillment, while their carrier services focus solely on transportation.
Is Supply Chain the same as fulfillment services?
Supply Chain is the comprehensive logistics division that includes fulfillment services among other offerings. Fulfillment specifically refers to their order processing and shipping services, which is a subset of the broader capabilities.
Does the company offer warehousing and distribution services?
Yes, Supply Chain operates 130+ warehouses and distribution centers⁴ across North America, providing comprehensive storage and distribution services for businesses of all sizes.
How many warehouses does Supply Chain operate?
Supply Chain operates over 130 warehouse and distribution facilities in North America⁴, managing more than 40 million square feet of storage space⁵.
What industries does the logistics division serve?
Supply Chain provides specialized solutions for healthcare, automotive, technology, retail, and consumer goods industries. They offer industry-specific compliance management and handling procedures.
How does pricing work?
Supply Chain uses custom pricing based on specific requirements, volume commitments, and services needed. Pricing typically includes storage, handling, transportation, and value-added services as integrated packages rather than itemized components.
What is the difference between competing solutions?
Both offer comprehensive services, but Supply Chain emphasizes integration with their delivery network, while UPS Solutions focuses more heavily on global logistics and international capabilities.
Can small businesses use the company as a logistics provider?
While Supply Chain can serve smaller businesses, their solutions are optimized for mid-to-enterprise level operations. Smaller companies may find better value and service with specialized providers designed for their scale.
Citations
1. FedEx Corp. “FedEx Completes GENCO Acquisition.” FedEx Newsroom, 30 Jan. 2015, https://newsroom.fedex.com/newsroom/global/fedex-completes-genco-acquisition.
2. Post and Parcel. “FedEx completes acquisition of US returns specialist GENCO.” Post and Parcel Info, 1 Dec. 2017, https://postandparcel.info/63981/news/fedex-completes-acquisition-of-us-returns-specialist-genco/.
3. “FedEx Supply Chain – Wikipedia.” Wikipedia, 13 June 2011, https://en.wikipedia.org/wiki/FedEx_Supply_Chain.
4. FedEx. “Supply Chain Services | FedEx.” FedEx Official Website, 1 Oct. 2024, https://www.fedex.com/en-us/logistics/supply-chain.html.
5. LeadIQ. “FedEx Supply Chain – LeadIQ.” LeadIQ Company Profile, 1 Jan. 2019, https://leadiq.com/c/fedex-supply-chain/5a1d95f02300005e00848cc9.
6. FedEx. “Company Structure and Facts.” FedEx Official Website, 22 July 2018, https://www.fedex.com/en-us/about/company-structure.html.
7. Multichannel Merchant. “FedEx Expands with the Acquisition of GENCO.” Multichannel Merchant, 16 Dec. 2014, https://multichannelmerchant.com/operations/fedex-expands-acquisition-genco/.
